Recent AAHOA Advocacy Updates
A Narrow Path Clears in the Senate for President Biden’s Economic Agenda
On Monday, April 5, the Senate Parliamentarian ruled that the budget reconciliation process, a tool used to pass the American Rescue Plan without Republican support back in early March, can be used again to pass fiscal legislation with a simple majority. The ruling would allow Congressional Democrats to bypass the 60-vote filibuster, essentially circumventing Congressional Republicans who to this point have been obstinate to support any aspect of President Biden’s economic recovery plan. However, Biden will need every member of the Senate Democratic caucus on board given the party’s narrow majority in both chambers. The American Jobs Plan, the next component of Biden’s three-pronged agenda, is expected to debut in Congress in May. We will keep AAHOA Members apprised of any further updates.
Small Business Administration (SBA) Reopening the Economic Injury Disaster Loan (EIDL) Program with New Loan Maximum Amounts
On March 24, the SBA announced an increase to the maximum loan amount borrowers can receive through the EIDL program. Starting Tuesday, April 6, the loan limit for the EIDL program will be raised from six months of economic injury with a maximum loan amount of $150,000 to up to 24 months of economic injury with a maximum loan amount of $500,000. Visit our CARES Act lending page or contact your lender or local SBA office for more information.
SBA Deploys New Tool to Expedite PPP Applications
The Small Business Administration launched a tool to clear “hold codes” that have prevented PPP applicants from applying after the loan program rebooted in January. The hold codes began appearing around the reboot following the implementation of procedures to prevent illicit and fraudulent applicants from taking advantage of the PPP. However, these new security measures prevented numerous legitimate applicants from receiving PPP funds. An SBA procedural notice on the topic indicates that a new model and lender certification framework will help resolve the issue. AAHOA will keep members updated on further PPP developments.
PPP Second-Draw Guidance and Updates
New Guidance from the SBA Released March 18
New Guidance from the SBA Released March 16
SBA releases Adjustment Plan to programs in the Economic Aid Act
On Jan. 19, 2021, the SBA issued two notices detailing the Adjustment Plan to microloan programs authorized by the Economic Aid Act, and amendment to the Coronavirus Aid, Relief and Economic Security Act passed last March. Due to insufficient funding in the $3.5 billion allocated to the programs, the SBA is reducing the number of months provided for 7(a) and 504 Microloan Programs. The Adjustment Plan went into effect on Tuesday, February 16. Contact your lender or SBA District Office for more information and questions on the matter.
- Paycheck Protection Program (PPP) Update
- Paycheck Protection Program (PPP) Update
- Second Draw Paycheck Protection Program (PPP) Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts Including What Documentation to Provide (Released 1/19/2021)
- Reminder – First Draw PPP Loans Under Review May Be Delayed Getting Second Draw PPP Loan Number
As described in SBA’s interim final rule on SBA Loan Review Procedures and Related Borrower and Lender Responsibilities, SBA may review any PPP loan, as the Administrator deems appropriate. If a borrower’s First Draw PPP Loan is under review by SBA and/or information in SBA’s possession indicates that the borrower may have been ineligible for the First Draw PPP Loan it received or for the loan amount it received, the lender will receive notification from SBA when the lender submits an application for a guaranty of a Second Draw PPP Loan and will not receive an SBA loan number until the issue related to the unresolved borrower’s First Draw PPP Loan is resolved. SBA will resolve issues related to unresolved borrowers expeditiously.
AAHOA Member Financial Institutions* Participating in the Paycheck Protection Program
*Please note, the following financial institutions are only accepting current/existing customers
Creative Lending Solutions
Prajesh N. Patel
Fountainhead Commercial Capital
Live Oak Bank*
*If you are not a current Live Oak Bank customer, you can fill out this form to be notified by email once they have opened up the program to other businesses that are not current customers.
561-508-7558, ext. 1